Correlation Between Metalero Mining and NIKE
Can any of the company-specific risk be diversified away by investing in both Metalero Mining and NIKE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Metalero Mining and NIKE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metalero Mining Corp and NIKE Inc CDR, you can compare the effects of market volatilities on Metalero Mining and NIKE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Metalero Mining with a short position of NIKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metalero Mining and NIKE.
Diversification Opportunities for Metalero Mining and NIKE
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Metalero and NIKE is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Metalero Mining Corp and NIKE Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIKE Inc CDR and Metalero Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Metalero Mining Corp are associated (or correlated) with NIKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKE Inc CDR has no effect on the direction of Metalero Mining i.e., Metalero Mining and NIKE go up and down completely randomly.
Pair Corralation between Metalero Mining and NIKE
Assuming the 90 days horizon Metalero Mining Corp is expected to under-perform the NIKE. In addition to that, Metalero Mining is 1.64 times more volatile than NIKE Inc CDR. It trades about -0.12 of its total potential returns per unit of risk. NIKE Inc CDR is currently generating about 0.1 per unit of volatility. If you would invest 1,427 in NIKE Inc CDR on August 31, 2024 and sell it today you would earn a total of 48.00 from holding NIKE Inc CDR or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Metalero Mining Corp vs. NIKE Inc CDR
Performance |
| Timeline |
| Metalero Mining Corp |
| NIKE Inc CDR |
Metalero Mining and NIKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metalero Mining and NIKE
The main advantage of trading using opposite Metalero Mining and NIKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metalero Mining position performs unexpectedly, NIKE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NIKE will offset losses from the drop in NIKE's long position.| Metalero Mining vs. Newmont Goldcorp Corp | Metalero Mining vs. Agnico Eagle Mines | Metalero Mining vs. Barrick Gold Corp | Metalero Mining vs. Wheaton Precious Metals |
| NIKE vs. Metalero Mining Corp | NIKE vs. High Liner Foods | NIKE vs. Capstone Mining Corp | NIKE vs. Gfl Environmental Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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